You can only claim depreciation on the business portion of the motor vehicle’s cost. If you use the logbook method, you can generally claim depreciation, or decline in value, of the motor vehicle. The 12-week period you choose should be representative of the business use of all cars. If you want to use the logbook method for two or more cars, the logbook for each car must cover the same period. If your circumstances change, such as a change in the type of work undertaken by your business, you may need a new logbook. If you establish your business-use percentage using a logbook from an earlier year, you must keep that logbook and maintain odometer readings in the following years. If you started to use your car for business-related purposes less than 12 weeks before the end of the income year, you can continue to keep a logbook into the next year so it covers the required 12 continuous weeks.Įach logbook you keep is valid for five years, but you may start a new logbook at any time. That 12-week period needs to be representative of your travel throughout the year. If this is the first year you have used the logbook method, you must keep a logbook for at least 12 continuous weeks during the income year. odometer readings at the start and end of the journey.reason for the journey (such as a description of the business reason or whether it was for private use).the make, model, engine capacity and registration number of the car.the business-use percentage for the logbook period.the odometer readings at the start and end of each subsequent income year your logbook is valid for. If you make two or more journeys in a row on the same day, you can record them as a single journey the number of kilometres travelled for each journey.the total number of kilometres the car travelled during the logbook period.the car’s odometer readings at the start and end of the logbook period.when the logbook period begins and ends.$9,000 × 60% = $5,400 End of example What to record in your logbook To work out how much he could claim as a deduction, Tim completed the following calculation: Tim's total expenses, including depreciation, are $9,000 for the income year. To work out the percentage of car travel used for business-related purposes, Tim made the following calculation: 6,600 ÷ 11,000 × 100 = 60% of travel was for business-related purposes. Of these, 6,600 were for business-related purposes. If you're a sole trader with simple tax affairs, you can create a logbook and record business-related car trips using the myDeductions tool in the ATO app.Īt the end of the income year, Tim’s logbook shows he travelled a total of 11,000 kilometres. evidence of all your other car expenses.evidence of your actual fuel and oil costs, or odometer readings on which you estimate your fuel and oil use.an electronic or pre-printed logbook (available from stationery suppliers).Multiply your total car expenses by your business-use percentage.Add up your total car expenses for the income year.dividing the distance travelled for business by the total distance travelled.Work out your business-use percentage by.To work out the amount you can claim with this method: This method is only for sole traders or partnerships claiming for a car.
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